Question: Consider Panels B and D in Figure 16.4. Using the information in each panel, compute the share price at each node for each bond issue.

Consider Panels B and D in Figure 16.4. Using the information in each panel, compute the share price at each node for each bond issue.
In figure 16.4.

Year Panel a) Firm assets 1.67 3.33 0,000.00 6,279.12 26,50098 43,141.27 7502.88 12,214.03 19.883.36 5629.32 9164.04 4223.61 (b) Ordinary bond Price $694.47 Yield 7.29% 4166.82 4912.38 5429.02 6000.00 5429.02 6000.00 4471.64 6000.00 4223.61 (c) Call schedule N/A4791.10 5361.58 6000.00 (d) Callable bond 4109.14 4791.10 5361.58 6000.00 4371.73 5361.58 6000.00 4471.64 6000.00 4223.61 Price $684.86 Yield 7.57% (e Convertible bond Price $887.39 Yield 2.39% 5324.34 7578.78 11,357.56 18,489.12 4733.96 6351.59 8521.44 4471.64 6000.00 4223.61 (f Callable convertible bond 4908.85 6976.77 11,357.56 18,489.12 4371.73 5361.58 8521.44 4471.64 6000.00 4223.61 Price Yield $81 8, 14 4.01%

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